More than Numbers

About Me

Not Saying

I don't usually blog anonymously, but I don't want my friends stumbling on this because I know money is a lot tighter for them. I can't be honest without seeming like I have a lot, because I do. I'm really not bragging, I do feel that money is how people with no talent keep score, and that it doesn't mean much for self worth or anything.
I am in my 40s and realized years ago that having extra money (more than you need) gives you freedom and less anxiety. I really enjoy doing new things, and I've made a point of learning about money and finances and investments, and have tried many different ways to get income.

Budgeting

December 26th, 2011 at 10:40 am

I need to do a lot in this category. I have vague ideas where my money goes and comes from, but its been a while since I've looked at specific financials.

Its hard for me to care in too much detail when my mortgage is so high. I pay $2600/month (includes taxes). So adding up my $3 coffees spent once a week seems a bit silly. But I really should do it so I can actually quantify this view, and perhaps the numbers won't actually be like my perceptions.

I have been tracking all my money for the last 30 years and I have been very strict in totalling up since being on a pension for the past 13 years.
As I always was on top of my bills but not on my living day to day expenses.

Want tracking daily and totalling your budget monthly does help you find areas to cut back on if you need find money in hurry, you then can cut back in your over spending area without cutting back too much in other areas.

The exercise is all about focus. If you track it even to the coffee candy bar level, either you spend less or you understand/are happy with how you spent your money. As you lose focus, your spending goes up.

The other purpose for tracking daily is it forces you into a state of conscious vs. nonconscious spending. So often our spending is done without real awareness, which often leads to too much spending and not enough joy about it. By having to stop and reflect on whether you really want to take out your spending notebook and mark the item down, you can begin to assess what purchases add to your life, vs those that simply add to the stress level in your life (i.e., when the credit card bill comes you feel absolute dread).

I was honestly shocked at how my nickle and dime habits added up after I'd been tracking my spending for a couple of weeks. And that helped me begin to identify those spending habits that really needed to go.